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  • Bank Dictionary

Banking Dictionary

Banking is an industry that deals with cash, credit, and other forms of money. Banks provide a secure environment for storing excess cash and credit. Savings accounts, certificates of deposit, and checking accounts are all available. These deposits are used by banks to provide loans. Home mortgages, business loans, and auto loans are all examples of these types of loans.

Even native speakers may find financial words unfamiliar, although they are useful to everyone. You might wish to work in a bank. It's possible that you'll need to travel for business or conduct business in another country and need to know a few banking-related terms.

Shape Shape
    Abandonment
    Abandonment option
    Abnormal returns
    Absolute priority
    Accelerated cost recovery system (ACRS)
    Accelerated depreciation
    Accounting earnings
    Accounting exposure
    Accounting insolvency
    Accounting liquidity
    Accounts payable
    Accounts receivable
    Accounts receivable turnover
    Accreting swap
    Accretion (of a discount)
    Accrual bond
    Accrued interest
    Accrued interest
    Accrued Interest
    Accumulated Benefit Obligation (ABO)
    Accumulator
    Acid-test ratio
    Acquiree
    Acquirer
    Acquisition of assets
    Acquisition of stock
    Acquisition
    Act of state doctrine
    Active
    Active portfolio strategy
    Actively Managed
    Actively Managed ETF
    Actuary
    Additional hedge
    Adjustable rate preferred stock (ARPS)
    Adjusted present value (APV)
    Administrative pricing rules
    ADRs
    ADS
    Advance commitment
    Adverse selection
    Advising Bank
    AEZs
    Affidavit
    Affirmation
    Affirmative covenant
    After-tax profit margin
    After-tax real rate of return
    Agencies
    Agency bank
    Agency basis
    Agency cost view
    Agency costs
    Agency pass-throughs
    Agency problem
    Agency theory
    Agent
    Agent Bank
    Aggregation
    Aging schedule
    AIBD
    AIDB
    AIFI
    ALCO
    All equity rate
    All or none
    All-equity rate
    All-in cost
    Allocation
    All-or-none underwriting
    ALM
    Alpha
    Alpha
    Alpha equation
    Altiplano
    AMC
    American Depository Receipt (ADR)
    American Depository Receipt (ADR)
    American option
    American Option
    American option
    American Stock Exchange (AMEX)
    American-style option
    Amortising swap
    Amortization
    Amortization factor
    Amortization
    Amortizing interest rate swap
    Amount at risk
    Analyst
    Ancillary services
    Angels
    Annapurna
    Announcement date
    Annual fund operating expenses
    Annual percentage rate (APR)
    Annual percentage yield (APY)
    Annual report
    Annualized gain
    Annualized holding period return
    Annuity
    Annuity due
    Annuity factor
    Annuity in arrears
    Annuity
    Anticipation
    Antidilutive effect
    APEDA
    API 2
    API 4
    Appraisal ratio
    Appraisal rights
    Appropriation request
    Arbitrage
    Arbitrage Pricing Theory (APT)
    Arbitrage
    Arbitrage
    Arbitrage-free option-pricing
    ARF
    Arithmetic average (mean) rate of return
    Arithmetic mean return
    ARMs
    Arms index
    Arm's length price
    Articles of incorporation
    ASB
    Asia Securities Industry & Financial Markets Association (ASIFMA)
    Asian currency units (ACUs)
    Asian In
    Asian option
    Asian option
    Asian Out
    Ask
    Ask
    Ask price
    Asset
    Asset activity ratios
    Asset allocation decision
    Asset Backed Security (ABS)
    Asset classes
    Asset for asset swap
    Asset pricing model
    Asset pricing model
    Asset substitution
    Asset substitution problem
    Asset swap
    Asset swap
    Asset turnover
    Asset/equity ratio
    Asset/liability management
    Asset/Liability Risk
    Asset-backed security
    Asset-based financing
    Asset-coverage test
    Assets
    Assets requirements
    Assets
    Assignment
    Assignment
    Assignment
    Associated gas
    Association for Financial Markets in Europe
    Asymmetric information
    Asymmetric taxes
    Asymmetry
    Atlas
    Attachment point
    At-the-money
    At-the-money 1
    Attribute bias
    Auction Date
    Auction markets
    Auction rate preferred stock (ARPS)
    Auction-Settled Transaction
    Audit Risk
    Auditor's report
    Authorized shares
    Auto callable
    Autocorrelation
    Automated Banking Machines (ABMs)
    Automated Clearing House (ACH)
    Automated Teller Machines (ATMs)
    Automatic Exercise
    Automatic stay
    Autoregressive
    Availability float
    Available Balance
    Average
    Average (across-day) measures
    Average accounting return
    Average age of accounts receivable
    Average collection period, or days' receivables
    Average cost of capital
    Average life
    Average life
    Average maturity
    Average rate of return (ARR)
    Average rate option
    Average strike option
    Average tax rate
    Away

    What are the fundamentals of banking?

    The concepts and principles linked to the practise of banking are referred to as banking fundamentals. Banking is a business that deals with credit, cash holding, investments, and other types of financial operations. Because it allocates cash to borrowers with productive investments, the banking industry is one of the most important drivers of most economies.

    Deposits and withdrawals, currency exchange, forex trading, and wealth management are all services provided by banks. They also serve as a conduit between depositors and borrowers, using the monies placed by their customers to provide credit to those who need it.

    Banks make money by charging interest on loans, which they benefit from by charging a greater interest rate than they pay on customer deposits. They must, however, follow the rules set down by the central bank or the national government.

    Banks are divided into several categories

    Depending on the type of business they do, banks can be classified into one of several categories. Private persons and enterprises can use commercial banks' services. Individuals and families can use retail banking to get credit, make deposits, and manage their money.

    The size of community banks differs from that of commercial banks. They are solely focused on the local market. They offer more personalised service and cultivate long-term connections with their clients.

    These services are available through the internet banking system. E-banking, online banking, and net banking are all terms used to describe this industry. The majority of other banks now provide internet banking services. There are a lot of banks that exclusively operate online. They may convey cost savings to the customer because they don't have any branches.

    Savings and loans are specialist banking institutions designed to encourage the purchase of a home at a reasonable price. In order to raise money to lend for mortgages, these banks frequently offer higher interest rates to depositors.

    Credit unions are owned by its members. Because of their ownership structure, they may offer low-cost, more personalised services. To join, you must be a member of their membership field. This could include employees of businesses or schools, as well as people within a specific geographic area.

    Investment banking helps companies raise money through initial public stock offerings (IPOs) or bonds. They also make mergers and acquisitions easier.

    Small firms can use merchant banking to get similar services. They offer products such as mezzanine financing, bridge finance, and corporate credit.

    Sharia banking abides with Islam's prohibition on interest rates. Furthermore, Islamic banks do not lend to enterprises that deal in alcohol or gambling. Instead of paying interest, borrowers’ profit-share with the lender. As a result, Islamic banks avoided the hazardous asset classes that contributed to the financial crisis of 2008.

    How to Use Dhanguard's Banking Dictionary to Learn Banking Terms

    First and foremost, take a look at each new word or phrase listed. It's crucial to double-check even if you think you know some of them. We identify words and believe we know them, only to be unable to recall them when we need to utilise them. Always keep a check on our dictionary for the important banking terms.

    Understanding the fundamentals of banking and finance, as well as the terminology used to discuss them, can make a significant difference in your bank account.

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